Interim Results

On-Line PLC 30 March 2007 Embargoed for release until 30th March 2007 On-line PLC ('On-line' or 'the Company') Unaudited Interim Results for the Six Months Ended 31 December 2006 On-line today announces unaudited interim results for the six months ended 31 December 2006. Chairman's Statement As a shareholder in On-line, you will know that the company's primary focus is its investments. Our efforts are concentrated on helping these to grow and become not just leaders in their field, but investments with real value. You will see that we have made a loss of £211,000 in the period, which is predominantly due to £207,000 being written off our investments. This related to our investment in ALL IPO in which the share price fell over the period and under accounting conventions is required to be stated at the lower of cost and net realisable value. It is worth noting however that accounting conventions do not allow us to include a similar uplift in the value of ADVFN which has a market value of over £2M more than the cost at which it is included within the balance sheet. ADVFN PLC ADVFN has increased its turnover by 45.6% for the last six months to £2.644M compared to the same period last year. This continued growth is of course great news but more importantly, ADVFN is now moving to its next stage and is on track to become cash flow positive by the end of this year. Having spent the last few years developing its platform it now appears that this hard work will start to reap the rewards expected. In addition to the ADVFN site with its core share information and bulletin board business, there are now several other properties under the ADVFN umbrella that are all helping the group achieve profitability: Equity Development Ltd, one of the UK's leading independent research companies, InvestorsHub and Silicon Investor, USA-based stocks and shares web sites; CupidBay - a dating website and Fotothing, a photo blogging site. . Subscriptions and advertising sales are at an all time high and as new products are added and the quality increases these numbers continue to grow. InvestorsHub and Silicon Investor are now very much assimilated into ADVFN and the team in the US are very keen to see the integration of ADVFN's products into the sites. This has already started with Silicon Investor and received a warm welcome from its user base, which bodes well for future developments. We believe that ADVFN has a strong stable of products and businesses and a team focused on the next phase of its life. ALL IPO PLC ALL IPO has also made great steps forward. Though not yet revenue-generating, it has worked very hard to build up important alliances with brokers and institutions. This has resulted in an increase in the flow of products that have been made available to private investors. It recently started its ALL IPO discretionary service, which enables members to fund an account and have ALL IPO and Redmayne-Bentley manage a portfolio of IPOs for them. By utilising Redmayne's discretionary managers and ALL IPO's ability to source IPO opportunities, the service provides a route for private investors to access the IPO market. ALL IPO has also expanded its offering to include secondaries and bonds. The next year will see the company broaden its scope and start to make a wider selection of financial products available to its clients which now number in the thousands. Michael Hodges Chairman 30th March 2007 On-line PLC Profit and Loss Accounts for the six months ended 31 December 2006 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Turnover 27 19 36 Administrative expenses (31) (31) (54) Operating loss (4) (12) (18) Amount written off of investments (207) - (85) Net interest - - - Loss on ordinary activities before taxation (211) (12) (103) Tax on loss on ordinary activities - - - Loss on ordinary activities after taxation (211) (12) (103) Loss per ordinary share (2.75p) (0.16p) (1.3p) On-line PLC Balance Sheets at 31 December 2006 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Fixed assets Investments 1,081 1,373 1,288 Current assets Debtors 58 60 56 Investments 796 1,002 794 Cash at bank and in hand 21 21 27 875 1,083 877 Creditors: amounts falling due within one year (82) (73) (82) Net current assets 793 1,010 795 Total assets less current liabilities 1,874 2,383 2,083 Capital and reserves Called up share capital 3,242 3,242 3,242 Share premium account 2,205 2,205 2,205 Option valuation reserve 59 - - Profit and loss account (3,632) (3,064) (3,364) Total shareholders funds 1,874 2,383 2,083 On-line PLC Cash Flow Statements for the six months ended 31 December 2006 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Net cash (outflow) / inflow from operating (6) 21 (4) activities Capital expenditure Purchase of current asset investments - (48) (49) Loans made to other entities - - 32 - (48) (17) Net cash outflow before financing (6) (27) (21) Financing Issue of ordinary share capital - - - Net cash inflow from financing - - - Decrease in cash (6) (27) (21) On-line PLC Statement of Total Recognised Gains and Losses for the six months ended 31 December 2006 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Unaudited Unaudited Audited £'000 £'000 £'000 Loss for the period (211) (12) (103) Unrealised gain / (loss) on current asset 2 - (209) investments Total recognised gains and losses for the period (209) (12) (312) On-line PLC Notes to the interim statement for the six months ended 31 December 2006 1. Loss per ordinary share Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Loss for the period £'000 (211) (12) (103) Weighted average number of shares '000 7,662 7,662 7,662 Loss per share p (2.75p) (0.16p) (1.3p) 2. Reserves Profit and loss Option valuation Share premium account reserve account £'000 £'000 £'000 At 1 July 2006 (3,364) - 2,205 Prior year adjustment re FRS20 option valuations (59) 59 - Unrealised gain on investments 2 - - Loss retained for the period (211) - At 31 December 2006 (3,632) 59 2,205 3. Reconciliation of operating loss to net cash outflow from operating activities Six months ended Six months ended Year ended 31 December 2006 31 December 2005 30 June 2006 Operating loss (4) (12) (18) Decrease / (increase )in debtors (2) 35 7 Increase / (decrease) in creditors - (2) 7 Net cash outflow from operating activities (6) 21 (4) 4. The directors do not recommend the payment of a dividend. 5. The financial information contained in this document does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the year ended 30 June 2006 is extracted from the audited financial statements for that period on which the auditors gave an unqualified report. A copy of those financial statements has been filed with the Registrar of Companies 6. The interim financial information has been prepared in accordance with applicable accounting standards and under the historical cost convention. The principal accounting policies of the Company have remained unchanged from those set out in the Company's June 2006 Annual Report and Financial Statements except for the adjustments resulting from the adoption of FRS20 in the period as described below. The Company has adopted FRS20 with effect from 1 July 2006. FRS20 requires the recognition of a charge to the profit and loss account for all applicable share based payments, including share options. The Company has equity-settled share based payments but no cash-settled share based payments. All share based payments awards granted after 7 November 2002 which had not vested prior to 1 July 2006 are recognised in the financial statements at their fair value at the date of grant. As vesting periods and non-market based vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of share options expected to vest. Estimates are revised subsequently if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. All equity-settled share based payments are ultimately recognised as an expense in the profit and loss account with a corresponding credit to the option valuation reserve. The adoption of FRS20 requires a prior period adjustment to be made for awards granted before 1 July 2006. This has created an opening balance within the option valuation reserve at 1 July 2006 of £59,000. 7. Copies of this statement are being posted to shareholders shortly and will be available from the company's registered office at Suite 27, Essex Technology Centre, The Gables, Fyfield Road, Ongar, Essex, CM5 0GA. This information is provided by RNS The company news service from the London Stock Exchange
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